Who is Protected by the Miller Act Bond?
The Miller Act is designed to benefit those who supply material or labor that are called for in the prime contract and who have not been paid in full. The Miller Act, 40 U.S.C. 270d defines “person” to include any individual, partnership, corporation or other legal entity. While the Miller Act’s express language suggests that its scope is broad, its coverage extends only to those parties who supply labor or material directly to the prime contractor, and those who supply labor or material directly to a subcontractor (rather than a supplier) of the prime contractor. Consequently, a third-tier subcontractor – a person who supplies to a supplier of the prime contractor – has no protection under the Miller Act. • FIRST TIER SUBCONTRACTORS. A subcontractor performs for or takes from the prime contractor a specific part of the labor or material requirements of the prime contract. On the first tier, there is no need to distinguish between subcontractors and suppliers who deal with the prime co
